Government has finally announced its compulsory acquisition of the concession rights that were granted to the Railway Systems of Zambia (RSZ) Limited.
Finance Minister, Alexander Chikwanda, made the disclosure when he addressed the nation on the National Broadcaster saying the compulsory acquisition of the concession rights has been necessitated by the consistence of RSZ acting in a manner prejudicial to the interests of the Zambians.
Mr Chikwanda said the compulsory acquisition of the concession rights has been done due to high unacceptable levels of derailments, loss of life and property.
He stated that the decision has been arrived at in accordance with cabinet’s mandate to safeguard the interest of the people of Zambia, adding that to this effect Zambia Railways Limited takes over the operations and management of the railway network which was the subject of the concession Agreement in 2003.
The Finance Minister cited mismanagement of the Zambia Railways infrastructure and the rolling stock which in turn led to the deterioration of the Zambia Railways assets and resultant loss to the country as a whole.
Mr Chikwanda further noted that government observed, among other concerns, that the objectives of the concession had not been met and such as the exorbitant railway transport costs as compared to road transport which had for some time now led to non utilization of rail transportation.
He assured that government remains determined to safeguard the safety and interest in the country%u2019s railway sector and to ensure sustainability for the Zambian people.
The minister explained that government is committed to ensuring that there are sustainable and cost effective measures in place to manage the railway infrastructure.
QFM
BRAVO!!!!!!!!!!!!!!!!!
Well done. It is about time. Why compulsory though? Consification would have been better.
They can have it. After all they will fail to run it again just like before.
we dont need stu pid zambians like you!!!!!!!!!!!!!!!!!!!!
Good move thats what we want.
Government has done the right thing to terminate the Concession Agreement with RSZ in order to preserve the national railway infrastructure from further deterioration given that RSZ has failed to invest in the railway assets and improve operations, and to allow Government to reposition itself in improving the railway sector which is critical to the country’s economic development.
It was long overdue. Zambia Railways was once a booming company and a good employer which has been stripped of assets while we are watching.
Firstly, Zambia is clearly a free market and government must limit its involvement to regulation. RSZ was privatized and had an indirect ‘right to make losses’ should operations be unfavourable.
Once again you tend to see the police state PF is attempting to create. Government must have bailed out RSZ with a convertible loan facility, convertible into equity shares.
PF appears not to have direction. Sata says that the sale was corrupt without a court hearing? Is the executive running the judiciary?
Shut up pumbafu! You don’t know the difference between privation and concession!
In effect, shutting down one company to allow another to take over the former’s market is privatization.
Look, do not get emotional, your overwhelming support for PF is just an indication of blindness.
@ Lord , You can’t buy equity in a mismanaged entity! Oh and by the way government has every right to seize control of any asset, if it feels the failure of said asset will disrupt the financial ecosystem of a nation.  Â
HERE COMES TO THE PERFORMING GOVERNMENT! BRAVOOOO……!!!
PF government MUST be very careful and cautious in the way they are going about making decisions
Serious men do serious things while children pick fights with the police.
Job well done PF.
next it will be ZANACO watch the space.Then proceed to mines. These are Zambian proprties and so they must be given back to zambians. Or by the way Zambian breweries was also zambian, how about lintco now called dunavant……..please move fast…national milling as well,zamhort, chilanga cement,etc PF here we come.
No reason for that. ZANACO is performing satisfactorily. Stop scare-mongering.
Ts necesary bt lets b mature bout issues, ws alex waitin 4 michael to blo da whystle?
don’t fail to run it again imwe ba govt
MMD failed economic policies.ZR is back and I will use the train tonite to Kitwe and back.
@ #3 Joy….. Who told you that we ZAMBIANS had failed to run ZR???? you clown… MMD sold things simply because they believed GRZ should not run business and also so an opportunity to make a cut and take fees. That was their manifesto which destroyed our manufacturing and industrial base.. Ati private sector are better at things.. They were even after ZESCO the *****s.. I am glad and ecited and we can now work to restoring ZR to its former glory and power.. I am a born and bred Copperbelt person.. never in thise days even up to 1997 did copper or cobalt move on road. never. ZR moved everything.
The Good old days are back
The good old days are back!? Last time, I recall, these things were run by government there were shortages of cooking oil, bread, mealie meal, sugar, etc. Heck, there were even shortages of beer while we didn’t even have Fanta and Coke. I just hope those “good” old days aren’t back.
safe guard zambians lives by caging the chinese who abuse zambians than. high unacceptable levels of derailments, loss of life and property ? u kidding me!!! PF has the Kaunda type, all u need r regulations and inspections to safe guard Zambian interests.
Bravo Minister,bring high speed trainbs
Am sitting on the fence on this issue.I just wonder what type of signals this will send to who be investors especially looking at the fact that this is the second take over by governent after Zamtel.
I know what will happen – Investors with criminal minds will stay away.
Congrats PF for a bold decision. It is in the interest of the country in the long run.Zambians let us learn to love each other.We only have tis country
RSZ must have been given targets to meet within a reasonable period of time say 2years. In a free market, government must set regulation and allow the judiciary to preside.
The current government appears to be flip flopping every day in every way. PF has failed to run the economy and it is evident.
The events of the last two weeks are reminiscent of the UNIP days, as much as most of us did not experience them.
What makes you think that they were not given targets? You need to comment from an informed position. If you believe that RSZ should have carried on in the current situation then you really do not care about Zambia
O happy day when ZR came back.More Jobs for abane Kabwe.
@the dark lord, kula stiopet we need nid o thz companies bt the process matters, remember privatisation yalipusana, go to sku and len mo bout concesions
I see no difference because the reverse results in nationalization. Do not apply profanity or get emotional. This is an indication that you have lost your ploy. Grow up and man up, argue with fact and use English!
these Niggas are so quick to make announcements. why are they this Microphone happy? behaving like MCs oh! shit maybe its coz they are also initials of the Big Bwana
SUCKER YOU THINK BELOW YOUR BELT
Then Kabimba is working hard.I thought it was only the other day when he was told to study the situation ? Hmm !
WHY IT HAS BEEN TAKEN BACK……………………………………………………………………………….
a) Abandonment of the inter-mine railway network resulting in heavy inter-mine cargo moving by road;
b) High railway transportation costs resulting in excessive road usage for heavy cargo, and minimal or non-utilization of railway transportation;
c) Failure to meet minimum service levels for passenger freight despite being a beneficiary of a substantial Government subsidy;
d) Unacceptably high levels of derailments, loss of life and property leading to enormous cost to Government; and
e) Blatant disregard of the provisions of the concession agreement and unsatisfactory performance, resulting in great risks to the sustainability of railway transport in Zambia.
Mo taim.
Every thing is investor.Why cant you run the economy on your own.
Fantastic move President Micheal Sata, please arrest and recover the wagons they took in the name of scrap metal. The next is privatized companies by Hakainde.
FOREIGNERS ARE TIRED OF RUN THE ECONOMY FOR US.BRAVO PF
# 6
ZR was not privatized!!! You should understand what concession means. What were the terms of agreement for the concession?
In effect it was privatized because Zambia Railways was shut for RSZ to take over the market.
Good move ba PF!!! These RSZ guys failed to run Zambia Railways. Improving rail transport will save our roads and it should reduce the cost of transport, if they improve on passenger trains. Good move!!!
Good move ba PF athough you are going it the wrong way,The Magande way was the best.The sale should have invistegated and those found wanting be tried in courts.
Do not employee cadres now
“…adding that to this effect Zambia Railways Limited takes over the operations and management of the railway network which was the subject of the concession Agreement in 2003.”
I THOUGHT SOME FOOLS WERE SAYING THE CURRENT PRESIDENT WAS PART OF THE SALE OF ZAMBIA RAILWAYS AND NOW WAS REVERSING.
OPPOSITION, WERE ARE YOUR FACTS AND OBJECTIVITY?
are we going to see bullet trains in Zambian now which GRZ will introduce
VERY GOOD PF TAKE OVER ALL THE STATE OWNED ASSETS SO THAT NEW AND SERIOUS INVESTORS CAN TAKE THEM OVER!!!!!
PLEASE TAKE OVER CHILANGA CEMENT,KCM,MCM,ASAP
@ #3 Joy… Who told you that we ZAMBIANS had failed to run ZR???? MMD sold things simply because they believed GRZ should not run business and also so an opportunity to make a cut and take fees. That was their manifesto which destroyed our manufacturing and industrial base. Ati private sector are better at things. They were even after ZESCO!!! I am glad and ecited and we can now work to restoring ZR to its former glory and power.. I am a born and bred Copperbelt person. Never in those days even up to 1997 did copper or cobalt move on road. never. ZR moved everything.
1. MMD sold companies that had been drained and had unhealthy balance sheets. There was a criterion for privatization.
2. Evidently, Zambia Railways was running on consistent losses and had mass debt with manufacturers.
3. The private sector performs better as compared to the government. The most profitable companies in the country are private- Airtel, Lafarge, Zambia Sugar, Stanchart.
4. If the MMD did not carry out a rigorous privatization programme, people would still be lining up for basics.
@32.21 …. You full of lies and talking crap.. MMD’s manifesto, plans and ambitions were to SELL everything which did.. WE the people fought to save ZANACO, ZAMTEL & ZESCO which were the last standing ones. Mwanawasa sold off 49% of ZANACO but resisted (albeit under heavy pressure from Wold Bank, Donors and others) the sale of ZAMTEL & ZESCO. Silly RB greedily sold off ZAMTEL , taking a nice cut from the transaction and was after ZESCO.. BUT WE ZAMBIANS STOPPED the R.APE!
In your point 1,who drained the parastatals?
” Finance Minister, Alexander Chikwanda announces the grabbing of RSZ by Government ”
Why does the writer use the word ‘grabbing’? Is he so deep up the ‘foreign investors’ backside that he takes their side no matter what? The word is ‘seizing’, not ‘grabbing’.
Excellent news of course. At least the state can take back privatised assets that are badly run.
Also, the present Libyan government is a collection of psychopaths, crooks and even elements of Al-Qaeda. There is an AQ flag flying over Tripoli. Benghazi was the source of much of the holy warriors who were sent to Iraq and Afghanistan.
So why is ZAMTEL still in their hands?
Lets see what this govt can do this term.They’ve done fairly well so far.
Good boys! Now get money from the World Bank, rehabilitate the track and replace rolling stock. Enforce strict rules on what should move by road and what should move by rail and for what distance. Learn from Spoornet in SA. Train your staff and relook at the org structure. Give them some tax concessions. I mean if soft drink chaps for pepsi can be given why not a strategic investment like railways. All infrastructure materials, rolling stock spares, should come in duty free and zero rated for VAT purposes. Do not overstaff again but re-employ key staff. This is my free advice.
Thumbs up to the move by our government!
Kapwepwe,Sipalo,Nkumbula,Mundia,Katilungu,Musakanya,Chisata,Chimba,Shapi,Kamalondo,Puta,Kamanga,Wina,Nakatindi,Bull must be dancing right now for what they had worked for has been returned to the rightfull owners
The move sounds valid seeing that the railway network was getting damaged. Zambians need to take up the challenge and make the railway better than it is. The workers need to be protected and given favouble salaries, the number of employed needs to go up. Transportation fees should be favorably so that people use rail to transport maize and the like not putting them on the trucks which spoil our roads. Has RSZ given a response yet?
@Lord Voldemot. Why not actually read the article again if you’re struggling to comprehend it? What do you think he means by “Mr Chikwanda said the compulsory acquisition of the concession rights has been done due to high unacceptable levels of derailments, loss of life and property” and “Mr Chikwanda further noted that government observed, among other concerns, that the objectives of the concession had not been met and such as the exorbitant railway transport costs as compared to road transport which had for some time now led to non utilization of rail transportation”?
RSZ has received unqualified reports from their auditors Ernst & Young. These are professionals who review compliance issues at all levels and I do not see need to read Mr. Chikwanda’s statement.
When was the last time you got onto a train in Zambia? If you have no idea of what you are talking about the best thing is not to expose your ignorance.
Lord,stop mentioning the audit firms,they made the govt sell companies at give away price.They even misled my Mwanawasa to sell KCM at 25 million dollas.The so called audit firms are not trust worthy in such matters.they are interested in making their profits.Just ask HH and MTN BEEG
I nearly forgot one thing,Lord are you Phiri of RSZ.I advise you start preparing for your time in prison.You know what you have done in this company
@Kalu, I do not have an idea who Phiri is. It is a shame that you know who ever he is, affiliation explains a lot. Do not get emotional. Once you get emotional everyone knows that you are desperate and losing.
I will mention whoever is implicated. This is a matter of public interest and there are no limits to comment.
Respond when you quit your childish ranting and baby crying. Man up and talk intellectually!
@Little Njekwa- Do not get emotional. I see no need to use trains. Besides, isn’t the purpose of these trains mainly for cargo? Get your facts right, do not be emotional and do not practice politics of dog-leashing!
You have no point and you retort insult. You are ignorant because the source of your points is the very article you are reading.
Your loyalty to PF will not benefit you or your family.
Lord,I posted two comments here,you have just talked on one.Do you still trust the Audit firms in such matters as privatisation having seeing how our companies where privatised?I am asking because you seem to suggest that the report on RSZ that ernest and young will produce will be the most accurate of the happenings in RSZ.I suspected you to be Phiri because you sounded like him,or at least you are very close to the system.This is my opinion.No emotions and no insults.
So they have already studied the concession within hours. Same with the Finance bank. Whatever the benefits of these actions, am sure the procedure is not right and may have consequences on FDI which you are at the same time trying to promote. Tell us, your next move after this one? I only hope you are not poking some Isreali Mosad out there in the mediterranian.
LT why moderating my comment? Seems you are under instructions from Madumbo maliketi.
This is the best news coming out of Lusaka in recent times. It is clear that the lunacy of the free-traders has been ruining Zambia bit by bit, sector by sector. The Mining sector has not been a boom for Zambia but for foreigners. This type of recklessness in national economic sectors must be dumped into the dustbin together with the MMD and its thugs. Now Sata must be more tolerant of opposition views so that his ideas are checked for validity.
My government at work.
So they have already studied the concession within hours. Same with the Finance bank and Zamtel. We are yet to see the outcome of Zamtel court case. Whatever the benefits of these actions, am sure the procedure is not right and may have consequences on FDI which you are at the same time trying to promote. Tell us, your next move after this one? I only hope you are not poking some Isreali Mosad out there in the mediterranian.
Iam not a supporter of the PF but on this issue they have my full backing.However I hope it will not become a trend of grabbing companies from investors.
Next, KCM, lol
thanx pf for bringing it back to the zambians am sure tongas will be happy since it was the best and cheap mode of transport for them
PF has been goofing on many issue but on cancelling the concession I give them a plus!!! RSZ has not improve our railway system which they were supposed to do. Rather they have allowed the country’s railway system to deteriorate. RSZ currently employs 500 workers which they scaled down from the 1500 employees ZR used to employ. RSZ trains travel at 20Km/h due to damage of on infrastructure however, when ZR was operational trains would travel at an efficient speed of 65Km/h. The truth is RSZ have not performed as well as their counter parts in the mining sector or like Chilanga (Larfage) Cement or Ndola lime. In my opinion it is not a bad idea to ask for our rail way back
I will look at this situation from two different perspectives. On one hand, RSZ was not necessarily acting in the best interest of Zambia as they were running at inefficient entity. In Southern Africa, the trains were running at a low speed in Zambia comparison to when traveling through neighbouring countries. As a government, their is urgent need to transfer the heavy load from the roads onto to rail in order to save on repairs costs. On the other hand, this may be sending a very bad signal to would-be investors as investing in the country may now be frightful to investors. The issue of nationalisation is a thing of the past and Governments should look to dialogue and enforcements of there laid out regulations (fining if necessary) than actual nationalisation
well done, look at tazara as well.
Tonga transport has been revised.
I Must Admit That I Was Wrong To Have Supported The Former Regime. King Cobra And Crew Are Taking Back Our Property. Back Into Our Hands. I Think They Deserve The Support Of All Right Thinking Zambians. Lets Grab Back Everything Because The Imperialists Never Even Want To Share Our Own Wealth With Us. They Don’t Create Employment And They Don’t Put Money In Our Pockets. They Just Take Everything.
You write in uppercase because you represent a weakling! The loudest is the weakest in the room.
Are your views so senseless that you need to emphasize them? I think so.
@Don P, good observation but privatisation should not be wholesome like MMD did. Railways, Power utiility, Telecommunications should have been left with the state because of there stategic nature in the govt`s develop policy. Telecoms have even got a national security attachment to it. You can not just give it away to Gaddafi`s son after some brown envelops to Dora (where is she?) and RB & Curbs. They should now end here and not follow ZANACO unless the transaction was marred with fraud. Any well meaning investor should understand these moves by the govt.
Yes guys…this is really good news. While in other countries the rail transport is number one ours was number zero. I have never used a train in Zambia, just imagine. Now you PF do a good job to make this RZ better than it was. We want good railway and good jobs for Zambians. Please make Zambian proud. Dont steal as the MMD did. Great news indeed. Now creatures of Zambia are becoming wiser.
Congratulations Sata and Company. Wealth should go to the Zambian people, not a small clique like Zalawi (damaging our roads). Now put ZR back on track and compel the mines to use the railway line when moving their imports and exports. Then it will be more money in people’ pockets indeed!
mr minister, save poor zambians who are at the mercy of this good for nothing called kankhara or populary known as flush bus owner. He increases fares as he chooses to. His buses are so rotten and fit to carry cockroches even they refuse to go into his buses. Pliz pf help poor zambians. [-(
Even mines should be touched. If we could have a few mines back to the people it will be easy to regulate FOREX Â and also create jobs through value addition via companies such as ZAMEFA and the like. Its high real good jobs were created for the majority of Zambians. For the so called investors (Infestors) we would like you to create your own mines and industries if you are true investors. Look at MTN, Airtel etc. These invested their own money into the Zambian economy,.Â
A necessary move in order to get things back on track. Interestingly, as always, some people wish for failure where we could actually garner success.
Next, KCM
That is good move. There are alot more companies that have become shells after privatization, please extend the same action to them. MMD was just after privatizing without considering th benefit it will bring to the Zambians! Shame!!!!!
There is nothing that is going to improve. Unless the government is going to relay the 100 year old track that Cecil Rhodes built for you the problems enumerated by Chikwanda won’t come to an end. The derailments, and high cost of rail transport are as a result of using an ancient century old rail track. There is nothing to praise nor celebrate here! This is just cheap populism and pseudonationalism! You’ve just nationalised another bottomless pit into which millions of budgetary resources would be poured! You are failing to find resources for Tazara one wonders where you will find money to run another rail line.
all Google for the reports on the concession to get facts before commenting carelessly on technical matters. (zambia railways concessioning world bank pdf)
Good move the by Government.It is long overdue. This guys didnt do any good the Railway system.Viva PF on this great move.
With time …. you shall soon release that all trains will stop moving… Â watch this space. Transnet will take back all the rolling stock. Then what?Â
For this PF bravo!! long overdue, but kindly structure a rock solid PPP arrangement around it asap that has all the necessary performance standards and conditions for re-entry by government. Dont even think about nationalising, get a technical advisor yesturday who will structure the deal on behalf of gvt with clear objectives, performance indicators and public sector benefit analysis etc. Then advertise. Dont get confused here and try to run it!!!!
PF , whilst we appreciate your actions, its the manner it is being done that will backfire on the economy. Zamtel will unfortunately be in receivership in two years time because, Government has no capacity to recapitalise it. The same with Zambia Railways, it will completely run down and no investor will want to touch any state asset for fear of having their hands burnt.
l cant believe the nurses have let you play on the keyboard! did you not read the zamtel report? lapgreen put no money into zamtel but used grz money -where do you think the corruption into zamtel comes from
Yes, the sky is falling indeed!
looking at the comments above. I realise why this country will never progress our arm chair dreams! You may be educated but most zambians thinking are book theories. This is wrong move and it will get worse than it is. RSZ should have been engaged and struck a common cord of reinvesting in the railways. Most of you who demonise MMD policies you are today beneffiting indirectly through liberalising economy. Zambia was not like this 20 years at least for us who were youths by 1991. So give praise where it is bamambala. MMD privatised becoz most entities were loss making and could continue being bailed out by govt. Continued bailout meant that public infrastructure roads, railways schools were neglected. Gvt role is to create environment 4 businesses thrive. Trust me govt has no money for ZR!
Rubbish!
Our railways, current and planned rail network, place us as the single hub to link the whole of the eastern, southern, central (DRC particularly) to each other and to the sea ports. Way too important for us to be dilly-dallying around a bad concession agreement made by some very greedy transaction advisors (DCDM et al). We should all support this move. BUT PLEASE PF leave ZANACO alone, the cost of this for investor confidence which took an hit in the bad emotional decisons on ZAMTEL, could be dire! Certainly renogiation should be the first step on any other concessions especially in the mining industry. BALANCE, BALANCE
#6. Lord whatever. The only interests you have are those of your bantustan-none at all for Zambia.
The PF government has failed and lamentably so. When selling Eurobonds failed, they resorted to building roads and appeasing chiefs.
I speak facts and no matter how emotional you get, I stand uncorrected.
Lord,failure of selling eurbonds is just your prayer.You know that PF will make a grade when they get this money.Actually,the all opposition parties know.You would rather zambian economy fails, so as to raise your political fortunes,than succeeding.It is one reason you are seeing western diplomats almost every day.You want zambia to fail like zimbabwe.Why not just say what you would do if you were in govt.Since PF has no plan,why not talk about your plan? What is it that the PF has not done well that you could have done better,and how? That is why you even lack patience to wait for 2016 because you know that PF will succeed,you want to cut their term short by using foreign agents.
Ba Livingstone, Just you and only you being negative. You must be 20yrs old and born after the rail transport had gone to the dogs.Â
We want to drink ichibwantu on ZR again. Bravo PF and Bravo HE the President.
I attended two rallies where HE mentioned about the revamping of the Railway system and step number one has been accomplished. Mwabombeni shikulu. Next rehabilitation and injection of capital to resuscitate ZR.
Livingstone,
It will not help you always being negative. There are some things PF is correcting man. Not always behaving like a dull person who always wants to condemn even that which is good. To you whatever PF does is wrong but what HH says is ever sweet. What nonsense is this? Are you the incarnated Meastro Hehehehe Mwanga Mungungulu a SDA Elder who hated Sata and Bembas??. He was so negative just like you. I dont know where he has gone for the past two years. Grow up man.Â
This I believe no matter how bitter you are or stupid is not a forum for mentioning churches, you need to grow up and put on pants my guy…
A simple question to all those who seem happy…. Â is there money in the budget to now take over the operations of RSZ? If not how are the workers going to be paid? As far as i know, RSZ was leasing wagons from Transnet of SA. How is government going to pay for that? If Transnet takes its wagons back… Â which wagons is RSZ now going to operate.
These actions which SATA thinks will make him popular are the same which will kick him out of power. Watch Zamtel and RSA and see what will happen in a few years time. You will be begging investors to take the over again
The ZR land was not only sold in Lusaka but everywhere. The Govt needs to move fast and reverse this wanton sale of assets belonging to Zambia. Bukabwalala bwalichilamo pa Zed.
:((:o
only a fool will condemn this move RSZ are not investors but scrape metal dealers. Bravo PF Government on this but don’t torch ZANACO
The ever shameless doomsayers would rather the RSZ with their Boer backed shareholder bankers continue to run ZR cheaply, continue to reap profits at our expense and we get nada in return, with no long term strategy, these crooks took over in December 2003 and there is nothing, completely nothing to show for and you come here to criticise when it is taken over by your own people, shameful chaps indeed.
You should be ashamed of yourselves, this is above your partisan politics, your under5, your MMD in fact our hard working farmers in Southern province will benefit more from this. They will be able to transport livestock and farm produce cheaply to market instead of using the rail line to transport minerals from DRC to Cape town.
Good job PF, Good job ba Wynter!!
The Fake Engineer from Marapodi, You are another negative Chap. There is never a time you have praised any move by this Govt. The President is a master planner and he has being doing just that. You just wait a few more months and most you chaps will disappear in thin air with your child behaving politicians for you will be shy to say anything.
Let the so called investors build their own structures not getting on silver plate like they did KCM was sold for pen Zambians while should you give Sata a chance this man is well respected for his bold decision democracy will not work when many Zambians are hungry
No 83… Â like so many times on this blog. I will have the last laugh
We elect governments to provide leadership through legal institutional and regulatory framework. Perhaps Mr Zulu failed to provide the necessary legal advice. In the 1950’s the Northern Rhodesia government decided to construct a hydropower station at Kafue Gorge to meet the rising demand for electricity on the mines. Railway transport could not cope with the demand for coal from Wankie for the thermal power stations. The power station was instead constructed at Kariba by the Federal Government which came into being. Similarly the PF government has seen that there is traffic congestion and damage to the roads because of the under utilisation of railway transport and it has the mandate to do so. ZR can make money if GRZ regulates that goods above a certain tonnage travel by rail.
You’ve got your facts wrong bwana. Delve further.
How much will it cost the tax payer to run ZR and is the money there? Who is government going to blame for its failure to run Tazara?.. and when are they going to get round to running it profitably and efficiently?
Taking back the concession seems easy, bringing the antique rail line into the 21st century will be a financial challenge to say the least, especially without any plan or budget for it as at today!
84. Add value. The Zambia Railways infrastructure was built by Cecil Rhodes. What PF are taking over was neither built by UNIP nor MMD. So cut the crap about investors building their own infrastructure as this does not apply to ZR.
well good move thou taken too quickly, the infestors should have been engaged and given deadlines to meet of which after failure then government should have acted accordingly. yes RSZ became too expensive one time i got a quotation to move my vehicle which broke down in livingstone to kitwe and the Quote was US$2000.00 without Vat saying the whole wagon would be for my Medium sized car and no anyother cargo. try to reason with the Sales team no changes. i decided to send my a Mechanic from Lusaka and covered his upkeep cost and and all totaled US$375.00 equivalent. RSZ has realy messed up on several opportunities as you might be aware transport a vehicle via carriers from Durban to BeitBridge or martin’s drift is only about US$500.00.
This is the peoples government for real. Well done P.F!
Zambia is heading towards a failed state with gov’t in charge of everything. Prosperity does not come from gov’t but the very private sector the PF gov’t is taking apart. The sad truth is that the ppeople of Zambia are actually supporting the policies of gov’t takeovers which will in turn empoverish them. There is need for new leadership in Zambia, both in gov’t and the opposition…Â
@69 engineer, which trains move now for you to suggest this move ll make all trains stop moving. May be you mistaking australia for zambia.[-(
THIS IS GOOD NEWS. I THINK PROF CHIRWA WAS HEEDED BY THE GOVERNMENT. YOU SEE! REAL MEN WITH INTEREST AT HEART FOR ZAMBIA ARE ADVISING THE GOVT AND THE GOVT REALLY SAW SENSE IN PROF CHIRWA’S ADVICE. IT COULD NOT HAVE BEEN THE REACTION AS A RESULT OF PROF CHIRWA’S ADVICE. BUT, THE FACT THAT PROF CHIRWA ALSO EMPHASISED IN CONSTRUCTING A BETTER RAIL NETWORK MEANS THAT THIS IS THE WAY FORWARD. GRZ COULD HAVE HAD A PLAN ALREADY. BUT, THIS IS GOOD. NOW, LET’S HOW GRZ IMPROVES THE RAILWAY AND WHAT OTHER NEW LINES THEY BUILD.
Good move but I think the method used is very poor. They should have gone for a neotiated and agreed approach. Secondly they must quickly look for big investors and experienced partners in railway transport because government cant find the money to overhaul the company. Now is the time to take more care and move wisely. Avoid going for indian investors on this one. Lastly government must have adequate safeguards to ensure the RSZ saga does not re surface
Zambia should forget about selling the US$500 Million euro bond, grabbing of the RSZ was the final death nail.
Good move i take it that all procedures where followed when getting the Railway company back
Good move. Kabwe town was the HQ for ZR. The riches of this town was supported by the Lead and Zinc mines under Zambia Consolidated Copper Mines (ZCCM) run by Zambians! ZAMBIA RAILWAYS used to transport heavy cargo from these mines and elsewhere across the country. MMD sold off or concessioned these concerns and reduced our towns and people to nothing! I am nostalgic about this. Let’s move on and do the correct thing! Viva PF, viva Prof. CHIRWA!
The only addition to Kabwe town by MMD in their 20 year rule is the conversion of some colleges into universities. Kabwe is bustling with beautiful young ladies and nice young men from Mulungushi and Nkhruma Universities. The town has transformed into a trading town, no major industries. If ZR had grown or performed we could have seen Highridge compound and Zambia Railways compounds looking like compounds for workers. Not the villages we are forming in town.
Yes, now all heavy cargo must move to the railways. We shall need to expand the network to all provinces so that heavy cargo moves by train! Those in the trucking business will cry, but it is OK since you are fewer compared to the cost of repair to the roads. Imagine, heavy mining equipment is moved by road! The railway track is being ripped off!
Make the Railway Company profitable so that it can expand. For sure some investors have not added any value to Zambia. Some of them are fake and hopeless. Let’s do it. This is our country, no apologies people. All genuine investors and potential investors must feel safe to be in Zambia because you are not making our economy deteriorate but grow.
I see that we have a lot of communist readers of LT. The Zambian government failed to make ZR a viable independent entity in the past, what makes you think they will be able to do it now. The business of business should be left to businesses. Soon Sata will appoint some cadre to run it and we all know how that story will end. Its one thing to say RSZ failed, but were any efforts made to encourage the use of rail transport over road . . . . i don’t think so and if those efforts are not made going forward businesses are not going to move cargo by rail unless it makes good business sense, that is what Sata should be trying to achieve.
Investment
RSZ has met the requirements of the Concession Agreement in terms of its investment
commitments based on documentation they have provided to us (which is consistent with
their financial statements). However, they have not always submitted documentation in a
timely manner with sufficient details so that verification could be easily made by government
officials. In addition, some of their investments have been unorthodox (1:4 interlacing of
concrete ties in wood ties territory, as an example), at least as viewed in isolation of any
future investmen
Expected performance
Copper mining and processing dominates the economy of Zambia, and as well, it has had a
significant impact on traffic levels of the railway. In recent years, the world-wide demand for
this kind of traffic has decreased in line with overall economic slow-down. Copper demand
has increased in recent months; however, with the construction of refining facilities in the
Zambia Copper Belt, less concentrate is being exported through Durban and Dar es Salaam.
Unlike concentrates, trucking cathodes and anodes to the ports is a viable alternative. For
this and other reasons, RSZ export copper traffic has been eroded in recent years. Equally
significant has been the loss of intermine traffic between the copper mines and refineries.
This short-haul business had been lost
Justified and long overdue!! RSZ have been a total failure at running the railways since they won the concession. As a national asset, one hopes its not given to Ukwa’s favoured tribe!
So many haters! Give GRZ a chance to sort out the mess please.
Unless you were born yestaday, you ought to know that politicians can never run any business. The last time they tried we had to queue up just to buy bread and cooking oil. Look at your history books, they will show you that any economy with massive government involvment has always ended up going to the IMF to borrow money they can not borrow from any where else. Wake up kids, we have been here before. This move will only make it easy for politicians to still money from these companies while in power. The only way to create prosperity is by allowing in capital in the country in order to promote productivity, no two ways about it.
These NIGGAZ will scare all investors off this country
comments reserved were is Hourable Emmanuel Hachipuka?… I only wish the nicha Boma attitude will not merge in ZR and Kabwe Warriors should be looked after.
Good move. We now need to show those in doubt that Zambians can run a Railroad company as they did before the concession; 5million tons/year in cargo. Today one can sleep on the rail line and wake up the following day alive.
Ok Ok, before I give up on my county, listen to this, Unless you were born yestaday, you ought to know that politicians can never run any business. The last time they tried we had to queue up just to buy bread and cooking oil. Look at your history books, they will show you that any economy with massive government involvment has always ended up going to the IMF to borrow money they can not borrow from any where else. Wake up kids, we have been here before. This move will only make it easy for politicians to still money from these companies while in power. The only way to create prosperity is by allowing in capital in the country in order to promote productivity, no two ways about it.
It is only an incredible merchandise , they can fit very well – I got it in 10 days with no scores,Can be whether it was cased that might have been so greed – I give it 5 actors.
The need to revisit the agreement was started by Levy Mwanawasa and Magande. When they came in power the negotiations had already been made under Kasonde. In 2008 Magande went as far as asking the World Bank to help Zambia in reviewing the rail concession as the Rail concession was not favouring Zambia (April, 2008). He questioned this agreement and protected every Zambian.4 years later this uneducated President comes and says the very same thing, we give him credit and call him a hero. Zambians know which people are there for you and which people are out to blind you that they are working hard when in fact they are just jumping on the bandwagon of intelligent people. LT republish your article /2008/04/11/rail-concession-not-favouring-zambia–magande
Good move! this is the main reason why we voted pf into power! we want to see more progress and r expecting to see the economy improve. congrats and please revisit all the privatized parastatals. privatization has done more harm to our economy than good. What were the MMD government thinking? Just wondering!,,,,,,